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Recording and Valuing Trading Securities

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Recording and Valuing Trading Securities for Myers and Associates

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https://brainmass.com/business/valuing-securities/recording-and-valuing-trading-securities-458984

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The solution provides journal entry to record and valuing of trading securities, bond.

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Derivative Financial Instrument, Trading Securities Entries, Journal Entries for Fair Value and Equity Methods

13. Derivative Financial Instrument - The treasurer of Miller Co. has read on the Internet that the stock price of Ewing Inc. is about to take off. In order to profit from this potential development, Miller Co. purchased a call option on Ewing common shares on July 7, 2002, for $240. The call option is for 200 shares (notional value), and the stike price is $70. The option expires on January 31, 2003. The following data are available with respect to the call option.
Prepare the journal entries for Miller Co. for the following dates (see attachment)

7. Trading Securities Entries - On December 21, 2003, Tiger Company provided you with the following information regarding its trading securities (see attached)
During 2004, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2004, was: Clemson Corp. stock - $19,100; Buffaloes Co. stock - $20,500.
a. Prepare the adjusting journal entry needed on December 31, 2003.
b. Prepare the journal entry to record the sale of the Colorado Company stock during 2004.
c. Prepare the adjusting journal entry needed on December 31, 2004

12. Journal Entries for Fair Value and Equity Methods - Presented below are two independent situations. Prepare all necessary journal entries in 2003 for both situations.

Please see attached for all tables and additional info.

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